Question

In business strategy, firms use a _____ strategy to provide a specialized product or service for a narrow target market better than competitors.

a) Process efficiency
b) Product differentiation
c) Market niche
d) Low-cost leadership
e) Mass customization

Answer 1

Firms use a market niche strategy to provide a specialized product or service for a narrow target market better than competitors.

Step-by-step explanation:

In business strategy, firms use a market niche strategy to provide a specialized product or service for a narrow target market better than competitors.

A market niche strategy involves focusing on a specific segment of customers with unique needs or preferences that are not being met by other competitors.

By refining their products or services to cater to this niche market, businesses can gain a competitive advantage and attract loyal customers.

For example, a company may offer organic and gluten-free snacks specifically for health-conscious consumers, targeting a specific market segment that is not well-served by mainstream snack brands.